1. If one is financially sound then one can trade in a better manner then the individual who is trading on borrowed cash or on margin funding.
2. Thus it should be the endeavour of every individual to have atleast 5 months salary in the bank to tide over any crisis in a short term.
3. When I day trade and I know that I have the requisite financial backing then I am able to make more profit as generally I trade in fundamentally sound stocks and at times goes against the principle of day traders and convert the stock to a deklivery like a BTST or STBT trade. It is a relief to mind that the cash is available and one can use the same to get over any financial crisis.
4. Thus make it an endeavour to have a cash reserve and jump into the arena of stock trading as a more confident person and thus your decisions will yield more returns.
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